Washington, D.C.- The Commodity Futures Trading Commission (Commission)
has proposed regulations that would facilitate notice-designation as a
contract market in security futures products (SFPCM) by a national
securities exchange (NSE), a national securities association, or an
alternative trading system. The rules were proposed pursuant to the
mandate of section 5f of the Commodity Exchange Act (Act), as established
by section 252(a) of the Commodity Futures Modernization Act of 2000.

In addition to establishing SFPCM notice-designation procedures, the
proposed regulations would impose certain continuing filing obligations
on SFPCMs, would exempt SFPCMs from the ordinary application requirements
for contract markets under section 6(a) of the Act, and would provide
SFPCMs with a procedure to apply for exemptions from any other
provision(s) of the Act or regulations thereunder.

In proposing the rules the Commission has invited comment on a variety of
related issues, including whether the Commission should exempt SFPCMs, by
rule, from additional provisions of the Act or regulations thereunder.
Comment is also requested regarding, among other things, whether the
Commission's proposed approach to the treatment of SFPCMs
sufficiently parallels a related proposal by the Securities and Exchange
Commission, published at 66 FR 26977 (May 15, 2001).

The Commission's proposal was published in the Federal Register on May
31, 2001. Copies may be obtained by contacting the Office of the
Secretariat, Commodity Futures Trading Commission, Three Lafayette
Centre, 1155 21st Street, N.W., Washington, D.C. 20581, (202)
418-5100, or by accessing the Commodity
Futures Trading Commission website. Comments on the proposed rule
must be received by the Commission's Office of the Secretariat on or
before July 2, 2001.